CoreLogic is reporting today that its repeat-sales Home Price Index, based on sale prices for the same homes over time, posted a 7.4% year-over-year gain in November (including distressed sales), which was the largest annual increase in home prices nationwide in more than six years, going back to May 2006 (see chart above). It is also the ninth consecutive monthly increase in national home prices on a year-over-year basis starting in March of last year. The last time there were that many back-to-back monthly increases in year-over-year home prices was in 2006. Excluding distressed sales, CoreLogic reports that national home prices increased annually by 6.7% in November.
Looking forward one month, the CoreLogic Pending Home Price Index predicts that national home price appreciation will accelerate even higher in December, with an estimated 7.9% annual increase in last month’s home prices compared to December 2011 (see chart above).
CoreLogic chief economist Mark Fleming commented: “As we close out 2012 the pending index suggests prices will remain strong and the gains made in 2012 will likely be sustained in 2013.”
From Anand Nallathambi, president/CEO of CoreLogic, “For the first time in almost six years, most U.S. markets experienced sustained increases in home prices in 2012. We still have a long way to go to return to 2005-2006 levels, but all signals currently point to a progressive stabilization of the housing market and the positive trend in home price appreciation to continue into 2013.”
MP: The case that a US housing market recovery is now underway is further strengthened by today’s report on national home prices from CoreLogic, which is based on repeat-sales like the Case-Shiller home price index, but is more comprehensive geographically (covering areas that represent 86% of the US population compared to 20 metro areas covered by Case-Shiller) and more representative of recent (and pending) sales activity (Case-Shiller is based on a three-month moving average of home prices and released with a two-month lag). With almost every new report on housing prices, home sales, construction, housing starts, homebuilder ETFs, and builder confidence showing ongoing improvements (see examples here, here and here), at some point even the housing bears will have to admit that the robust 2012 US housing recovery is real.